Why do some economists support some level of inflation over completely stable prices? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. ? Reduced risk of deflation ? Easier for firms to adjust real wages ? More opportunity for contractionary fiscal policy More difficult for firms to adjust real wages ? More opportunity for expansionary monetary policy
Why do some economists support some level of inflation over completely stable prices? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. ? Reduced risk of deflation ? Easier for firms to adjust real wages ? More opportunity for contractionary fiscal policy More difficult for firms to adjust real wages ? More opportunity for expansionary monetary policy
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 4P
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![Why do some economists support some level of inflation over completely stable prices?
Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for
the wrong answers.
? Reduced risk of deflation
? Easier for firms to adjust real wages
? More opportunity for contractionary fiscal policy
? More difficult for firms to adjust real wages
? More opportunity for expansionary monetary policy](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa67c7aad-499f-45a8-89ff-0c20267be859%2Feab8119c-d57d-4761-a7d5-b6e6fdb110bf%2Fha66prn_processed.png&w=3840&q=75)
Transcribed Image Text:Why do some economists support some level of inflation over completely stable prices?
Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for
the wrong answers.
? Reduced risk of deflation
? Easier for firms to adjust real wages
? More opportunity for contractionary fiscal policy
? More difficult for firms to adjust real wages
? More opportunity for expansionary monetary policy
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